XRP Futures ETF Launches on Nasdaq
Volatility Shares introduces XRPI, the first U.S.-based ETF tracking XRP futures, signaling growing institutional interest in the cryptocurrency.
XRP Futures ETF Debuts on Nasdaq
A new era for XRP investors began Thursday as the Volatility Shares XRP ETF (XRPI) commenced trading on the Nasdaq exchange. This marks the first U.S.-based exchange-traded fund to directly track XRP futures contracts.
What is XRPI?
XRPI aims to provide investors with exposure to XRP futures without directly holding the cryptocurrency. According to the prospectus, the fund will allocate at least 80% of its assets to XRP futures contracts and shares of other XRP-linked ETPs.
- Expense Ratio: XRPI has a gross expense ratio of 1.15%, with a net expense ratio of 0.94% after fee waivers.
- Leveraged Options: Volatility Shares is also planning a leveraged 2x XRP futures ETF.
Demand for XRP Exposure
The launch of XRPI follows the successful debut of Teucrium's (XXRP) futures ETF in April. XXRP has already amassed $121 million in assets under management (AUM). Bloomberg senior ETF analyst Eric Balchunas views this as a positive indicator, suggesting strong market demand for XRP-related investment products.
Key Takeaways:
- XRPI offers a regulated and accessible way for investors to gain exposure to XRP futures.
- The launch of XRPI follows the success of other similar products such as XXRP.
- This development suggests increasing acceptance of XRP within the traditional financial system.
Investment Considerations
As always, investors should consider their risk tolerance and investment timeline before making allocation decisions. Bitcoin remains a volatile asset despite increasing institutional adoption.
This article is for informational purposes only and should not be considered investment advice. Always consult with a qualified financial advisor.